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Week 1: Introduction to Commercial Law

Subject: LAW10013 – Commercial Law
Lecturer: Nick Nicolopoulos
Date: TP2 2025


Topic Summary
This introductory week frames commercial law as an evolving, interdisciplinary legal field regulating relationships and transactions arising from trade in goods and services. Students were encouraged to conceptualise commercial law as a “pastiche” of legal doctrines — drawing on common law, statute, domestic and international sources. The discussion centred on the necessity of legal intervention in commerce, the regulatory purposes behind commercial frameworks, and the need for enforceability and predictability in transactions.

By the end of this unit, students should be able to:

  • Locate and describe common law and statutory provisions relevant to commerce
  • Apply legal rules to factual problems and reason to a likely outcome
  • Draft commercial contract clauses informed by legal principles

Definition / Scope
Commercial law governs the rights and duties arising from trade in goods and services. It includes both common law and statute, and spans domestic and international contexts.

Elements / Test

  • Rights and duties in trade relationships
  • Legal frameworks regulating conduct
  • Historical and current mercantile interactions

Authorities

  • Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 – Treaties must be incorporated into domestic law to have legal effect

    “A treaty does not form part of Australian law unless and until it has been incorporated into the law by statute.”High Court of Australia
    – Citation: Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355

Lecturer Notes

  • Encouraged students to visualise commercial law as a palette of ideas (aesthetic metaphor)
  • Discussed the symbolic importance of enforceable rights, beyond mere financial compensation
  • Analysed both facilitative and restrictive functions of commercial regulation

Case: Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355

Section titled “Case: Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355”
ElementDetail
IssueWhether a broadcasting standard made under a treaty was invalid due to conflict with the Broadcasting Services Act 1992 (Cth)
RuleTreaties must be incorporated into Australian law through domestic legislation to have effect
ApplicationThe Broadcasting Authority had acted inconsistently with the Act by implementing an international treaty standard that had not been validly incorporated
ConclusionThe Court found the standard invalid to the extent of inconsistency
RatioInternational obligations must be implemented through clear legislative language before they are enforceable domestically

Problem: Two Left Shoes – Cross-border Purchase

Section titled “Problem: Two Left Shoes – Cross-border Purchase”

Facts
Nick purchased shoes online from an overseas seller, but the product delivered was defective (two left shoes). The seller lacked a physical Australian presence.

Issue(s)

  • Does the Australian Consumer Law (ACL) apply to an overseas seller?
  • What domestic remedies are available for cross-border consumer disputes?

Lecturer’s Reasoning

  • Overseas entities doing business in Australia may fall under the ACL
  • Enforcement is difficult due to jurisdictional limitations
  • Remedies could include bank chargebacks, passive-aggressive reviews, or reporting ads

Answer Summary
✓ ACL may apply, but enforcement remains practically difficult


IRAC Structuring

  • Identify whether domestic or international law applies
  • Ask: Is this relationship governed by statute, common law, or both?
  • Always apply enforceability and jurisdiction as evaluative steps

Memory Aids / Mnemonics

  • “RRRR” for Commercial Law: Rights, Regulatory frameworks, Relationships, Remedies
  • “DUDE” for enforceability: Domestic law, Uniformity, Duties, Enforcement

Warnings

  • Do not assume treaties are binding without incorporation
  • Cross-border remedies may be unenforceable despite rights being recognisable
  • Always distinguish between legal enforceability and moral/vindicatory remedies

Cases Mentioned (AGLC4 format)

  • Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355

Legislation

  • Australian Consumer Law, being Sch 2 to the Competition and Consumer Act 2010 (Cth)
  • Sale of Goods Act 1958 (Vic)
  • International Sale of Goods (Vienna Convention) Act 1987 (Cth)

Other Sources

  • Unit slides (Week 1)
  • Discussion board examples
  • Lecturer anecdotes (e.g. shoe story, leather jacket, AI implications)

  • In what ways can small-scale buyers seek redress against international sellers with no Australian presence?
  • To what extent do de facto trade standards affect enforceability under international law?
  • How does AI-generated misrepresentation intersect with consumer protection law?